Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 62-59

1962-1 C.B. 315

Full Text

Rev. Rul. 62-59 /1/

The Internal Revenue Service will follow the decision of the United States Court of Appeals for the First Circuit in Boston & Maine Railroad v. Commissioner , 206 Fed.(2d) 617 (1953).

The Court held that the retirement method of accounting was a form of depreciation accounting and came under section 23(l) of the Internal Revenue Code of 1939, rather than section 23(f).

Where a taxpayer has consistently employed the retirement method of accounting and has maintained continuously a regular and consistent practice of handling retirements, the opinion of the Court here with respect to the time of deduction will be followed in the absence of indications of bad faith or abuse.

/1/ Based on Technical Information Release 373, dated March 27, 1962.